Which of the Following Statements Regarding Exclusions And/or Deferrals Is

question 60

Multiple Choice

Which of the following statements regarding exclusions and/or deferrals is False?

• A) Exclusions are favorable because taxpayers never pay tax on income that is excluded.
• B) Interest income from municipal bonds is excluded from gross income.
• C) Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year.
• D) An income item need not be realized in order to qualify as an exclusion item.

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Definitions:

Inductive Reasoning

a method of reasoning wherein general principles are inferred from specific observations, often used in scientific and everyday reasoning.

Sociodramatic Play

A form of play where children enact roles and scenarios, often involving complex narratives and social interactions, facilitating emotional and social development.

Social Roles

The patterns of behavior that are expected of individuals in society or within specific social groups, based on their position or status within a group.

Make-believe Play

Children's play that involves pretending and imaginative scenarios, often featuring role-play and fantasy characters.